Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to a negative figure one year earlier, driven by a significant improvement in operating cash flow. However, free cash flow and its margin weakened sharply from the prior quarter despite stable capital expenditure.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow improved markedly from the year-ago quarter but declined substantially from the prior quarter, resulting in a free cash flow margin that was higher than a year ago but lower than the prior quarter.
- Compared to the prior quarter, free cash flow and its margin weakened, driven by lower operating cash flow on slightly lower revenue. Compared to the same quarter one year earlier, free cash flow improved from negative to positive, with operating cash flow higher and revenue higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$279.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$350.0M
Cash generated by operations before capital spending.
CapEx
$71.0M
Capital spending and related asset purchases.
FCF margin
6.2%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2022-07-01 | $4.1B | $749.0M | $62.0M | $687.0M | 16.6% |
| 2022-09-30 | $4.2B | $588.0M | $64.0M | $524.0M | 12.3% |
| 2022-12-30 | $4.6B | $782.0M | $71.0M | $711.0M | 15.5% |
| 2023-03-31 | $4.5B | $350.0M | $71.0M | $279.0M | 6.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 82.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Recovery
Operating cash flow improved substantially compared to the same quarter one year earlier, lifting free cash flow from negative to positive. This was the strongest observable driver of the year-over-year improvement.
The year-over-year improvement in operating cash flow was the key factor enabling positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow improved markedly from the year-ago quarter but declined substantially from the prior quarter, resulting in a free cash flow margin that was higher than a year ago but lower than the prior quarter.
Compared to the prior quarter, free cash flow and its margin weakened, driven by lower operating cash flow on slightly lower revenue. Compared to the same quarter one year earlier, free cash flow improved from negative to positive, with operating cash flow higher and revenue higher.
Monitor the trajectory of operating cash flow, as its decline from the prior quarter was the primary factor behind the weakened free cash flow.